Revenue was 7.6% higher y-o-y at US$82.6 million, largely due to the contribution from the group’s freeze dry coffee business in South Asia, which began operations in the 2QFY2021. Looking at the revenues segmented by markets, it was no surprise that its main markets of Russia, Ukraine, Kazakhstan and the Commonwealth of Independent States (CIS) declined slightly by about 6%, but luckily, this was offset by a 233.1% surge in the group’s South East Asia market.
RHB Group Research is keeping its “buy” recommendation on Food Empire with a target price of 95 cents, as analyst Jarick Seet believes that the group’s latest 1QFY2022 ended March results has quelled all doubts of the group’s position amid the ongoing Russia-Ukraine crisis, of which both markets are Food Empire’s main markets.
To recap, Food Empire recorded net profit after tax (NPAT) of US$9.2 million ($12.7 million) for 1QFY2022, some 34.4% higher y-o-y, thanks to higher average selling prices (ASPs), lower selling and marketing expenses, as well as higher share of associated profit despite the higher exchange losses.
